Multiple Choice
The risk premium is
A) the amount by which the expected return on a risky asset exceeds the return on an otherwise comparable safe asset.
B) a measure of the riskiness of the overall economy in a domestic country compared with a foreign country.
C) the amount an investor must pay to insure his or her stock portfolio to protect against a fall in value.
D) the amount an investment bank charges to guarantee an annuity that pays a fixed rate of return in the future.
Correct Answer:
Verified
Correct Answer:
Verified
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